LCM is committed to delivering superior investment returns, thoughtful portfolio design, and accessible financial education to your employees.
Clear, strong principles guide our investment strategies at every turn. We select proven and stable exchange-traded funds (ETFs) and/or mutual funds with at least 3 to 5 years of performance history, with higher composite Morningstar ratings than similar funds.
Our fund choices have superior 1-3-5 year performance track records and at least comparable performance track records. Additionally, all our selections carry low expense ratios, which reduces drag on fund performance and lowers 3rd party investment management expenses.
We monitor our fund asset class performance regularly, ready to replace underperforming ETFs when necessary, and assess the track records of the principal portfolio managers for our ETF choices. No stone goes unturned when it comes to investments as paramount as retirement savings.
Our approach is designed to deliver superior returns while minimizing volatility and risk.
We create unique, customized model investment portfolios based on your individual needs. We offer as many portfolios as desired, with each portfolio representing different balances of expected return and risk. We typically recommend offering five to six portfolio options to employees, which we’ve found helps employees find a plan that suits their needs without feeling overwhelmed.
We consistently assemble portfolios that provide a high-rate of return for the given level of risk (volatility). The proof is in two metrics: standard deviation and the Sharpe ratio. Our portfolios have a significantly lower standard deviation than our S&P benchmark, and our Sharpe ratios are at 1.5 or more (a ratio of 1.0 means the investment is expected to earn higher returns than the level of risk indicates).
In addition to investment selection, we offer you and your employees our proprietary Client Risk Assessment Form and Financial Blueprint, which summarizes the individual’s current and future financial conditions, including:
Current net worth (Balance Sheet)Current cash flow (Household Budget)Retirement planning tools used to define a “Nest Egg” needed at the desired retirement ageModel asset allocation portfolio (with 19 different asset classes) for minimum retirement Nest Egg + desired estate distributionProjected minimum nest egg at retirement and desired estate distributionRecommendations for saving and investing